Economy
IMF Approves $204m for Rwanda’s PSI-Supported Program

By Modupe Gbadeyanka
The Executive Board of the International Monetary Fund (IMF) on Monday completed the sixth review of Rwanda’s performance under the Policy Support Instrument (PSI) and the first review of the arrangement under the Standby Credit Facility (SCF).
The Board’s decision was taken on a lapse of time basis.
Requests for an 18-month SCF arrangement with access of about $204 million or 90 percent of Rwanda’s quota and to extend Rwanda’s PSI-supported program through end-2017, were approved by the Board on June 8, 2016.
Half was disbursed upon approval of the SCF arrangement, and with completion of the first review of the SCF arrangement another $48.65 million becomes available for disbursement.
The remaining financing will be considered in two subsequent reviews in 2017. Rwanda’s PSI-supported program was originally approved on December 2, 2013.
In completing the reviews, the Board also approved modification of end-December 2016 program targets (to reflect new information on external assistance) and granted a waiver for a minor and temporary non-observance of the continuous zero limit on external arrears accumulation.
The main near-term objective of the current programs is to respond to adverse global developments, most notably commodity prices, which has led to growing external imbalances, resulting in pressure on the Rwandan franc and the banking system’s foreign exchange reserves. Restoring external sustainability is imperative for realization of medium-term program objectives, namely sustained high and inclusive growth, including through public infrastructure investment, and reduced dependence on donor support through higher domestic revenues.
Early evidence suggests that the short term adjustment policies have been effective in addressing external imbalances. The authorities have continued to allow exchange rate flexibility to serve as the main policy adjustment instrument, with depreciation of 9 percent over the first 10 months of 2016, complemented by modest fiscal consolidation and monetary tightening.
These demand management policies have been accompanied by the government’s home-grown ‘Made in Rwanda’ initiative, which seeks to substitute domestic production for some key imported goods, and export promotion efforts.
Performance under the program has been strong, with almost all program targets set through end-June 2016 and structural reforms through end-September 2016 being achieved.
The agreed policy mix remains appropriate for safeguarding external and fiscal sustainability, while supporting growth objectives. If current trends continue, the current account deficit should fall over the course of 2017-18, bringing official reserves above 4 months of imports.
The authorities have acted decisively to address growing external imbalances and thereby should avoid more painful adjustment that otherwise would have been needed, as illustrated by the experience of some other countries adversely affected by commodity prices.
Inflation pressure is currently supply driven with end-year inflation projections of 6.0 percent and 5 percent over the medium term. But the situation should be monitored closely to assess potential second-round effects of the inflationary impact of a depreciated exchange rate, and more monetary tightening may be needed if inflation pressures are greater than projected. Clearer communication regarding the policy stance could help steer inflation expectations. Decisive efforts would be needed to develop minimum conditions for inflation targeting within the agreed East African Community timeline.
Looking ahead, risks to the growth outlook are balanced. The government’s deliberate incentives to promote domestic production and add value to its exports should keep growth buoyant. However, should the drought be prolonged, both growth and inflation could be adversely affected.
Economy
BNB Price Reflects Changing Dynamics in the Digital Asset Market
Economy
NASD Unlisted Security Index Crosses 4,000-point Benchmark Again
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange achieved a milestone on Friday, April 24, 2026, after five securities on the platform helped with a 1.85 per cent growth.
Data showed that the NASD Unlisted Security Index (NSI) again crossed the 4,000-point benchmark yesterday.
The index chalked up 73.64 points during the trading day to close at 4,052.59 points compared with the preceding session’s 3,978.95 points, while the market capitalisation added N5.38 billion to finish at N2.424 trillion versus Thursday’s closing value of N2.380 trillion.
The price gainers were led by Okitipupa Plc, which grew by N25.00 to sell at N305.00 per share compared with the previous price of N280.00 per share. Central Securities Clearing System (CSCS) Plc gained N6.92 to close at N76.26 per unit versus N69.34 per unit, Afriland Properties Plc appreciated by N1.00 to N17.00 per share from N18.00 per share, FrieslandCampina Wamco Nigeria Plc improved by 55 Kobo to N99.55 per unit from N99.00 per unit, and Food Concepts Plc increased by 5 Kobo to N2.70 per share from N2.65 per share.
However, there was a price loser, MRS Oil, which dipped by N21.75 to N195.75 per unit from N217.50 per unit.
During the final session of the week, the value of securities jumped 75.2 per cent to N41.3 million from N23.6 million units, and the number of deals expanded by 62.9 per cent to 44 deals from 27 deals, while the volume of securities declined marginally by 0.9 per cent to 447,403 units from 451,522 units.
At the close of trades, Great Nigeria Insurance (GNI) Plc was the most traded stock by volume (year-to-date) with 3.4 billion units worth N8.4 billion, trailed by Resourcery Plc with 1.1 billion units valued at N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units traded for N1.2 billion.
GNI was also the most active stock by value (year-to-date) with 3.4 billion units sold for N8.4 billion, followed by CSCS Plc with 59.6 million units transacted for N4.0 billion, and Okitipupa Plc with 27.8 million units exchanged for N1.9 billion.
Economy
Naira Slips to N1,358/$1 as FX Reserves, Policy Uncertainty Concerns
By Adedapo Adesanya
It was not a good day for the Nigerian Naira in the currency market on Friday, April 24, as its value depreciated against the major foreign currencies at the close of transactions.
In the Nigerian Autonomous Foreign Exchange Market (NAFEX), it lost N4.53 or 0.33 per cent against the United States Dollar yesterday to trade at N1,358.44/$1, in contrast to the N1,353.91/$1 it was exchanged on Thursday.
Equally, the domestic currency slipped against the Pound Sterling in the official market during the session by N8.14 to close at N1,834.02/£1, compared with the previous rate of N1,825.88/£1 and dropped N8.01 against the Euro to sell at N1,590.73/€1 versus N1,582.72/€1.
Also, the Naira depreciated against the US Dollar at the GTBank FX desk on Friday by N4 to quote at N1,370/$1 compared with the previous session’s N1,366/$1, and at the parallel market, it depleted by N5 to settle at N1,380/$1 versus the preceding day’s N1,375/$1.
Data published by the Central Bank of Nigeria (CBN) indicated that NFEM interbank turnover surged to N43.562 million across 68 deals, up from N28.117 million the previous day.
Despite the CBN’s reassurance that the recent drop in external reserves is not worrisome, the market remains unsettled by persistent concerns over liquidity constraints, policy transparency, and weakening confidence in Nigeria’s FX market as gross reserves continue to decline to $48.4 billion.
The outlook for the Dollar appears supported by broader macro risks, including elevated oil prices tied to the tanker traffic disruptions in the Strait of Hormuz and a continued US-Iran standoff over ceasefire negotiations.
A look at the digital currency market showed that investors are sitting on the edge as the US Dollar rebounded amid geopolitical and inflation risks despite continued inflows into US spot bitcoin Exchange Traded Funds (ETFs).
Solana (SOL) rose by 1.2 per cent to sell $86.45, Cardano (ADA) appreciated by 1.1 per cent to $0.2517, Dogecoin (DOGE) grew by 0.9 per cent to $0.0989, Ripple (XRP) improved by 0.3 per cent to $1.43, Ethereum (ETH) soared by 0.2 per cent to $2,316.83, and Binance Coin (BNB) chalked up 0.1 per cent to sell for $637.44.
However, TRON (TRX) depreciated by 1.3 per cent to $0.3235, and Bitcoin (BTC) lost 0.2 per cent to close at $77,562.27, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 each.
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